Functioning effectively requires a number of areas of knowledge and expertise, all of which could be grouped into three critical categories: knowing our business (organization), knowing our profession (craft), and knowing our customers. This chapter addresses some of the specific areas of knowledge with which HR professionals need to become fluent.

This chapter is from the book

This chapter is from the book

Although
the
PHR
exam
is multiple
choice,
try
writing
and
answering
your
own "essay-based" questions.
Write
open-ended
questions
that
require
a response
of at
least
a full
paragraph–and
write
your
answers
without
looking
back
at your
study
materials.
The
process
of actually
writing
down
your
answers
will
reinforce
what
you
already
know,
and
will
highlight
what
you
need
to study
more.
It will
also
likely
help
you
as you
work
to recall
this
same
information
when
you
answer
related
multiple
choice
questions
on the
actual
PHR
exam.

Introduction

There is a familiar quotation that goes something like this: "Some people
make things happen, some people watch things happen, and some people wonder what
happened." In our profession, we are fortunate to have the opportunity to
choose which of those paths we will follow. While this choice holds true for
every chapter of this book (and therefore for every functional area within HR),
it is particularly true of this one.

In each of the following sections, we will look a bit more closely at some of
the key, underlying concepts and how they can support our efforts to function
more strategically in our roles as HR professionals. Some of the areas will
provide a step-by-step approach to the concepts being presented. Others will
identify, define, and/or offer a brief explanation about other items that
it’s important for HR professionals to know, but that aren’t fully
explored in this chapter.

Exam Alert

Perhaps more than for any of the six functional areas, PHR candidates are
strongly urged to supplement the material presented in this chapter with other
sources. Although the wisdom of seeking ancillary materials holds true for all
of the functional areas, doing so is particularly important for strategic
management, for a number of reasons. First, the concepts covered in this area
are prone to a variety of interpretations, which may differ slightly from each
other.

Additionally, though the functional area of strategic management represents a
relatively small percentage of the PHR exam (12%), it covers a significant
volume of information and spans a wide array of theories, disciplines, and
practices. The SPHR exam, in fact, devotes 26% of its questions to this
functional area—more than twice the percentage found on the PHR
exam.

With such a large amount of territory to cover, it’s impossible to
predict what will be on the exam—so don’t try. Give yourself plenty
of time, curl up with a good periodical or two, and prepare to learn a lot. This
approach will increase the likelihood that you will perform better on the PHR
exam. Perhaps even more importantly, it will help you function more effectively
in your role as an HR professional, as well.